The Finance Ministry, the maximum rebate available for a taxpayer stands at Rs 60,000. This rebate is available for an individual earning Rs 12 lakh annually. This rebate is as per the new tax slabs.

Income Tax without marginal relief (Rs) Tax actually payable with marginal relief
Rs 12,10,000 61,500 10,000
Rs 12,50,000 67,500 50,000
Rs 12,70,000 70,500 70,000
Rs 12,75,000 71,250 71,250 (No marginal relief )

The Union Budget FY26 brought substantial tax relief for the middle class. According to Finance Minister Nirmala Sitharaman, the income tax rebate under the new tax regime has been raised, allowing resident individuals with total income up to Rs 12,00,000 to pay no tax. Furthermore, marginal relief will remain in place for those whose income slightly exceeds this threshold. Previously, the rebate under the new regime ensured zero tax liability for individuals earning up to Rs 7,00,000.